On 18 April 2017 the Government announced major changes to the temporary and permanent skilled visa framework. Whilst many of these changes were implemented last year, there are still a number of reforms slated for March 2018. In this article, we give an overview of the key changes which are on the horizon for skilled visas.
Changes to the Temporary Skilled Visa Program
From March 2018, the subclass 457 visa, which has been used by Australian businesses since 1996 to bring skilled workers from overseas, will be abolished. In its place, the Government will establish the Temporary Skills Shortage (TSS) visa. The key difference will be that the TSS visa will consists of two streams, theses streams will have different durations and carry different entitlements:
|
|
Short Term Stream (STS) | Medium Term Stream (MTS) |
| Duration | Two years | Four years |
| Renewal | Visa renewal onshore, once only | Visa renewal onshore |
| Occupations | Occupations on the Short-Term Skilled Occupation List (STSOL) | Occupations on the Medium and Long-Term Strategic Skills List (MLTSSL). |
| English language | A requirement of an International English Language Testing System (IELTS) (or equivalent test) score of 5, with a minimum of 4.5 in each test component. | A requirement of a minimum of IELTS 5 (or equivalent test) in each test component. |
| Permanent residency options | No pathway to permanent residency | Permanent residency pathway after three years |
| Other | A genuine temporary entrant requirement will apply | Additional occupations will be available for regional employers |
The following changes will also take place to the temporary visa program:
Work experience: At least two years relevant work experience will be required
LMT exemptions LMT will become mandatory for all occupations, unless international trade obligations apply. Employers will therefore need to ensure they conduct LMT within the required timeframes, irrespective of the skill level of the occupation they are seeking to fill, unless the international trade obligation exemption applies.
Training: Employers will be required to contribute to a “Skilling Australians Fund”. The contribution must be paid at the time the worker is nominated and will be $1200 per year or part year for small businesses (those with annual turnover of less than $10 million) and $1800 per year or part year for other businesses.
Character: Mandatory penal clearance certificates are to be provided
Key Changes to the Permanent Skilled Visa Program
The following changes will take place to the permanent employer sponsored skilled visa programs:
Occupation lists: the new MLTSSL will apply to the Direct Entry stream for both the Employer Nomination Scheme subclass 186 visa (ENS) and the Regional Sponsored Migration Scheme subclass 187 visa (RSMS), with certain additional occupations available through the RSMS for regional employers.
Eligibility for Residency: The period required to transition to permanent residence will be extended from two to three years.
Training requirement: Employers will be required to pay a contribution to the Skilling Australians Fund at the time the worker is nominated. The required contribution will be $3,000 for small businesses (those with annual turnover of less than $10 million) and $5,000 for other businesses.
Minimum market salary rate: Employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold.
Work experience: At least three years’ work experience relevant to the occupation will be required.
Age: All applicants will need to be under the maximum age requirement of 45 at the time of application.
We note that for people who held, or had applied for, a subclass 457 visa on 18 April 2017 will still be able to access certain existing requirements under the Temporary Residence Transition stream.
For advice regarding skilled visas, please do not hesitate to contact us at info@hartmanlawyers.com.au for Australian immigration assistance.